Financial world needs reappraisal of old, western ideologies: Caveat Lector column

New bottles for new wines

federal-reserve-hq
The Fed's inflation policies didn't turn out too NICE

The old adage has it that generals are always fighting the last war. Has it dawned on anybody yet that we might be stuck fighting 21st century economic problems with 20th century economic theory and, more to the point, 20th century central bank policies?

Economics 101 taught us that inflation is a function of too much money chasing too few goods. Monetarism then taught us that by controlling the money supply, monetary authorities could open and close the growth and consumption taps. It was that s

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